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JPMorgan believes that current Bitcoin growth is being driven by global inflation


According to experts at JPMorgan Chase & Co. The search for alternatives to combat inflation, instead of the investor frenzy of the first Bitcoin ETF “BITO” in the United States, is taking Bitcoin to new highs in its price.

“By itself, the launch of BITO is unlikely to trigger a new phase of massive investment in Bitcoin.” JPMorgan strategist Nikolaos Panigirtzoglou opined, referring to BITO, the new ProShares Bitcoin Strategy ETF.

“We believe that the perception of Bitcoin as a better hedge against inflation than gold is the main reason for the current rally, which triggered a shift from gold ETFs to Bitcoin ETFs.” Panigirtzoglou added.

Likewise, the search for alternatives to combat inflation has renewed the interest of investors in cryptocurrencies. Which act as a hedge against global inflation.

In recent weeks, gold has not responded positively to the market. This is why the shift from gold ETFs to Bitcoin ETFs has accelerated. “This market behavior supports a bullish outlook for Bitcoin through the end of the year,” the strategists said.

For example, the $ 55 billion SPDR Gold Shares ETF, ticker GLD, is on track to see its fourth consecutive month of losses, which so far total more than $ 3.6 billion, according to data compiled by Bloomberg.

Likewise, the bank’s strategists have pointed to the launch of the Purpose Bitcoin ETF, BTCC ticker, in Canada, which had a positive acceptance at the beginning, which then slowly declined. JPMorgan experts added “the initial frenzy with BITO could fade after a week, just as it did in Canada.”

The Bitcoin ETF has beaten all expectations

Bitcoin reached a historic price on Wednesday, when it topped $ 66,000 for the first time. Investors and market analysts have largely attributed this advance to optimism about a global adoption of cryptocurrencies. This is due to the successful launch of the Bitcoin ETF on the United States stock market.

In addition, the ProShares “BITO” ETF marked a milestone this week when it debuted Tuesday as the second most traded mutual fund on record. On its second day on the market, “BITO” registered a trading volume of more than 29 million shares traded. Which represents more than $ 1,200 million dollars.

BITO, ProShares Bitcoin Strategy’s listed mutual fund, went on the market with a starting capital of $ 20 million. And right now, it’s trading at $ 43.26 a share, according to ProShares.

At the time of writing this post, the price of Bitcoin is located at $ 60,800 dollars, after having recorded a historical maximum of US $ 67,000 during the week. Source: CoinMarketCap

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